Godongwana made only minor adjustments to the government's spending plans and deficit projections in a third budget presented on Wednesday after his two previous attempts were scuppered by disagreements within the ruling coalition.

Speaking to Reuters in an online interview, Godongwana said the government did not expect a challenge on its spending plans barring any unexpected shocks but warned that there was a bigger downside risk on the revenue side.

"If SARS raises what we think it will, there will be no need for that revenue measure (a proposed tax increase next year). If not, we will have to cut expenditure substantially," he said.

--Reuters--